7. Sunflower Bank in Denver has the following common size income statement where each item is as a % of total average assets from its Uniform Bank Performance Report Earnings & Profitability Analysis (% Ave. Total Assets) in 2021 and 2020 compared to its Peer Banks of Similar Size (PG3) All figures as % of Average Assets 2021 2020 Bank PG3 Bank PG3 Total Interest Income (IR%) 3.24 3.18 3.54 3.58 Total Interest Expense(IE%) 0.19 0.23 0.42 0.50 Net Interest Income (NIM) 3.05 2.95 3.12 3.08 Total Non-interest Revenues (NIR%) 2.36 0.95 3.20 0.96 Total Non-Interest Expense (NIE%) 4.08 2.21 4.35 2.40 Burden % 1.72 1.26 1.15 1.44 Provision for Loan Losses (PLL%) 0.04 0.01 0.44 0.44 Pretax Operating Income (OROA%) 1.29% 1.68% 1.53% 1.20% Tier 1 Leverage Ratio (Equity to Assets) 9.23% 9.69% 9.62% 9.56% Equity Multipliers (?) Calculate These ROE (?) Calculate These AU (?) Calculate These NPM (?) Calculate These a. For just 2021, explain why Sunflower Bank has a lower OROA than the PG3 in 2021 based on NIM, Burden%, and PLL% Also, analyze why Sunflower's NIM% and Burden% differ from the PG3 in 2021. What strengths and weaknesses does this reveal for Sunflower Bank compared to the PG3 in 2021? b. Explain in detail why Sunflower Bank's OROA fell in 2021 based on changes in its NIM, Burden%, and PLL%. Why did its NIM change, and what type of funding gap does this suggest? Why did its Burden % change? c. Explain in detail why the Peer Banks (PG3) OROA rose in 2021 based on changes in its NIM, Burden%, and PLL%. Why did the PG3's NIM change, and what type of funding gap does this suggest? Why did the PG3's Burden % change? d. Calculate the Equity Multipliers (EM) (1/equity to assets as a fraction); OROE (OROA x EM); AU (IR% + NIR%); and NPM (OROA / AU as a fraction) for the Bank and PG3 for each year. Based on the Dupont Equation: OROE = NPM X AU X EM, explain why Sunflower's OROE went down in 2021, and why it is lower than the PG3's OROE in 2021. What weaknesses does Sunflower have in terms of NPM, AU, or EM, and what strengths